I remember a few years ago I bought something from a local merchant at a busy market when travelling. Returning to my hotel, I checked my supply of cash and noticed that I was short-changed. I remember handing the clerk a $100 bill, and the item was $19. I had $41 in my pocket meaning the guy had kept $40 over what I had paid for the item. Shame on me for not counting the change, however the real message was that the shop owner knew he would never see me again, so he took advantage of that fact.

I thought about this after speaking with someone who was looking at open houses and mentioned that they would use the listing agent when they found the home they wanted to purchase. We chatted about this strategy on buying a home and we did the “pros and cons” of the technique.

The first thing that came to mind was the experience I mentioned earlier with the shopkeeper. We had no relationship, and I am sure he felt he would never see me again so the level of “service” he offered was different than if I was a local and lived in the neighborhood. I have found that the best way to ensure you have the smoothest move, and that you are financially protected, is to create a relationship with a single agent and work together as a team to either buy or sell a property. When a Buyer or Seller invests time in a search with a realtor, they get to know each other, and that bond helps to create a level of trust. We have a term in Real Estate called “fiduciary duties.” What this means is that the agent owes a duty of loyalty, confidentiality, disclosure, accounting, obedience and reasonable care and diligence. This can be explained by working with a client where you.

• Hold their confidence with respect to anything shared privately.
• Disclose any relational conflicts you may have, present all offers, share the names of all parties interested in a property and any information on a Buyer paying a higher price. On behalf of Buyers, disclose any information about the Sellers willingness to lower the asking price and motivation, any relevant issues know about the property and any other details that may help the Buyer purchase at the best possible price.
• Be transparent about any monies held, distributed or earned during the transaction.
• Represent the clients interests in the manner agreed to.
• The duty of reasonable care means that the agent has been engaged having more expertise in the sale of a property, and that they will discover any relevant facts to ensure that a property is sold with the client fully aware of all important facts.

When you work with an agent as a “client” the above points are a framework you can expect from the agent you have hired. As you develop your relationship, the agent will come to understand what you are hoping to achieve, and the most stress-free manner of getting you moved.

Back to the shop keeper – in our business the relationship would be called a “customer” relationship. This is different that a client and is defined as.

• The customer will be treated in an honest, fair and ethical manner.
• The customer, unlike a client, will be offered a restricted level of service.
• The agent will take the information to prepare an agreement of purchase and sale for a Buyer and offer the area comparable properties. The agent is not allowed to advise the customer in any way.

In a nutshell, a customer signs an acknowledgement agreeing that the “brokerage is not representing their interests… but will act in a fair, ethical and professional manner.”

If we strip out the “legal jargon” the root of the differences is a relationship. When you create a relationship built on trust, you can be assured that the agent you have chosen to work with will do their best to represent you as a Buyer resulting in the best possible price or create a strategy to sell at top value when working with Sellers. Expecting that someone who has no relationship with you will treat you in the same manner may not result in a similar outcome.

I am writing this on a Monday and had 2 agents reach out to me sharing a client of ours toured their open houses. They do this to try to encourage an offer from my clients, through me, respecting the relationship we have together. This is professionalism at its best. Where the listing agent is doing what they can to best serve their Seller and respecting the Buyer and their agent.

If you are considering a move, I would love to sit down with you and discuss your options and how we create a relationship that will best serve your needs. I can be reached at lindsay@buyselllove.ca or 905-743-5555

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